Energy

“Eskom, as a state-owned monopoly, with centrally controlled oversight and direction, is not the best structure for the supply of electricity, a critical energy source without which no nation can grow and prosper,” argues Eustace Davie, a commentator on economic affairs. Entrepreneurs can drive change.

“Much better structures are those that have evolved under competitive circumstances in the EU, US and small forward-looking countries such as New Zealand.”

“South Africa will have a robust electric power supply system only once its electricity generation, transmission, distribution and control functions are separated out and independently. Security of short-term and long-term supplies demand that government takes action to change the current faulty structure.”

Thousands of entrepreneurs providing choice to millions of customers at low prices will drive energy security and bring down costs for all South Africans.

EnergyRecommendations:

Government could resolve many problems if it were to allow Eskom to sell the grid to an experienced international grid management company and use the proceeds to pay down some of its debts. This would take a great deal of pressure off Eskom and the government and open up the electricity industry for much-needed transformation, without which electricity security will remain elusive.

An independent high-voltage transmission grid is an essential component of a competitive electricity market in which consumers have a choice of suppliers (from competitive entrepreneurs).